Mortgage Loan Rates Made Mixed Moves as Applications Dipped Last Week

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The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting a decrease of 0.5% in the group’s seasonally adjusted composite index for the week ending June 29. Mortgage loan rate movements were mixed last week.

Mortgage loan rates did not change at all last week, with the 30-year fixed rate loan ending the week right where it began, at 4.66% according to Mortgage News Daily. The yield on 10-year Treasury bonds dipped to just over 2.83% on Tuesday and is not expected to move much in the holiday week.

On an unadjusted basis, the MBA’s composite index decreased by 1% week over week. The seasonally adjusted purchase index increased by 1% compared with the week ended June 22. The unadjusted purchase index was unchanged for the week and was 1% lower year over year.

The MBA’s refinance index decreased by 2% week over week and the percentage of all new applications that were seeking refinancing fell from 37.6% to 37.2%.

Adjustable rate mortgage loans accounted for 6.7% of all applications, up from 6.5% in the prior week.

According to the MBA, last week’s average mortgage loan rate for a conforming 30-year fixed-rate mortgage slipped from 4.84% 4.79%. The rate for a jumbo 30-year fixed-rate mortgage ticked up from 4.7% to 4.71%. The average interest rate for a 15-year fixed-rate mortgage decreased from 4.29% to 4.22%.

The contract interest rate for a 5/1 adjustable rate mortgage loan increased from 4.01% to 4.03%. Rates on a 30-year FHA-backed fixed rate loan slipped from 4.81% to 4.78%.